1.
Monopolistic competition and oligopoly are alike in that:
A.
the number of firms is approximately the same in both cases.
B.
the kinked-demand analysis is applicable in both instances.
C.
strong mutual interdependence exists among firms in both market models.
D.
nonprice competition is common to both.
2.
Product differentiation is present in:
purely competitive markets only.
monopolistically competitive markets only.
oligopolistic markets only.
both monopolistically competitive and oligopolistic markets.
3.
Under which of the following market structures will the long-run equilibrium price be equal to marginal cost?
oligopoly
monopolistic competition
pure monopoly
pure competition
4.
In which of the following industry structures is the entry of new firms the most difficult?
5.
R-1 F26111
The purely competitive market model is portrayed in the above figures by:
Figure A.
Figure B.
both Figures B and D.
Figure C.
E.
none of the figures.
6.
Refer to the above figures. We would expect industry entry and exit to be relatively easy in:
Figure A only.
Figure C only.
both Figures A and C.
all of the figures.
7.
Refer to the above figures. Both allocative and productive efficiency are being realized in:
all four figures.
Figures B and D.
Figure D only.
Figure B only.
8.
Refer to the above figures. Product differentiation may be present in:
both Figures C and D.
9.
Refer to the above figures. Long-run economic profits are most likely to occur in:
Figures A and B.
Figure D.
Figures A and C.
10.
Refer to the above figures. Industry entry is likely to be most difficult in:
